Bessent Pressed Lutnick Over Failure to Blacklist Nvidia Customer in China Chip Diversion Case
Summary
- Secretary Scott Bessent was reported to have pressed Lutnick over why sanctions were not imposed in connection with allegations that Nvidia semiconductors were diverted to China.
- Questions were raised over why Megaspeed, which is suspected of rerouting U.S.-made semiconductors to China, was not placed on an export restriction list.
- The allegations have continued to fuel debate over Nvidia’s China-related dealings and enforcement of U.S. semiconductor export restrictions.
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U.S. Treasury Secretary Scott Bessent pressed Commerce Secretary Howard Lutnick over why no action was taken over allegations that Nvidia semiconductors were diverted to China.
Walter Bloomberg reported on November 11 that Bessent asked Lutnick why Megaspeed, an Nvidia customer, had not been placed on an export restriction list. Megaspeed is suspected of rerouting U.S.-made chips to China.
Lutnick replied, "I don't know. I'll look into it," the report said.
Sources said Lutnick was reluctant to move against Megaspeed despite warnings from intelligence agencies because he was concerned such a step could intensify U.S.-China trade tensions.
The allegations have continued to fuel scrutiny of Nvidia's China-related dealings and of how the U.S. government enforces semiconductor export restrictions.
